DLF arm winds up retail JV with Italy’s Piquadro

DLF arm winds up retail JV with Italy’s Piquadro
The Economic Times, June 17, 2009, P18

Shuts Down New Delhi Store & Dismantles Team Working On Brand

Sarah Jacob & Boby Kurian BANGALORE

DLF Brands is winding up its joint venture with Italian leather and luggage accessories major Piquadro to open a chain of monobrand stores in the country. The development comes even as real estate giant DLF’s retail management arm is resetting growth strategies following an economic downturn, and reviewing the expansion plans of a few international fashion and lifestyle brands it operates locally, informed sources said.

The 51:49 JV between Piquadro and DLF Brands was projected to open 16 exclusive stores by 2013. DLF has closed down the first high-end Piquadro store opened in New Delhi almost six months back and has dismantled an internal team working on the brand.

Timmy Sarna, CEO of DLF Brands, confirmed the closure of the existing Piquadro store. “Piquadro is a very sophisticated brand, which is much ahead of its time with regard to the Indian market. It had a higher price positioning than our other brands and was unable to garner enough brand recall,” he said, when contacted.

However, he added that DLF may revisit plans and introduce Piquadro with more stores in the next few years once the market is ready. DLF did not respond to a specific query on the current status of the Piquadro JV.

Mr Sarna also denied that DLF was putting expansion plans on hold or reviewing the business strategy of a few other international partnerships with Italian apparel brand Alcott and French home decor retailer SIA. He added that the company was poised to open 15 odd new stores in the next few weeks across its brand portfolio. It operates a network of 20 stores currently.

DLF Brands had signed up a host of global brands in the premium-to-luxury segments over the last two years. This included high-profile JVs with Giorgio Armani, Salvatore Ferragamo and Dolce & Gabbana. Besides, it had also roped in brands like Alcott, Boggi, SIA, Sunglass Hut among others either through licensing deals or joint ventures.

This large portfolio had niche global brands with not-so-high brand recall in India. Sectoral observers said DLF Brands could be reworking its retail play and expansion plans of several brands in the wake of the changed economic climate. But sources said its JVs with Giorgio Armani and Ferragamo were on firm ground even though fresh store openings is likely to be deferred in the prevailing conditions.

REALITY CHECK

Move comes in wake of the Italian brand not being able to garner enough brand recall
DLF may revisit plans and introduce Piquadro with more stores in the next few years once the market is ready

The 51:49 JV between Piquadro and DLF Brands was projected to open 16 exclusive stores by 2013.

DLF’s retail management arm is resetting growth strategies following an economic downturn

It is reviewing expansion plans of a few international fashion and lifestyle brands it operates locally

DLF Brands had inked high-profile JVs with cos like Giorgio Armani, Salvatore Ferragamo and Dolce & Gabbana in last two years